No
accounting for design? ”It's the design world's dirty little
secret”, according to the February issue of Fast Company.
Despite the growing consensus that "good design is good business,"
most companies lack objective financial metrics to help them
calculate whether increased investment in design will, in fact,
generate increased profits. Does it matter? Chuck Jones, Whirlpool's
design chief, certainly thinks so.
Two years ago,
Jones made a pitch to add some injection-molded ornamentation to a
KitchenAid refrigerator's redesign, which would have added about $5
to the per-unit cost. The company's resource-allocation team asked
him to estimate the return on investment, but Jones couldn't produce
the numbers to make such a forecast. As a result, he was forced to
fall back on a rationale that was simultaneously elitist and lame:
Trust me. I'm a designer.
Trust me. I'm a
designer. That argument didn't fly.
Defeated, Jones
resolved to improve on what he dubbed his "Las Vegas approach" to
investing in design, "where you're basically asking people to roll
the dice and hope for the best." As a first step, he surveyed 15
"design-centric" companies, including BMW, Nike, and Nokia. To his
surprise, few had a system for forecasting return on design. Most
simply based future investments on past performance. "No one," Jones
says, "had really figured this stuff out."
The reasons are
twofold according to the complete article. Read it to see how
Whirlpool is accounting for design!
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